Foreign funds will flow back to emerging markets as there is no indication of an interest rate hike in the near term.
Emerging-market stocks rose the most in a month today after the U.S. Federal Reserve signaled interest rates will increase slower than previously forecast.
The developing-nation index has gained 1.4 percent this year and trades at 11.9 times projected 12-month earnings, data compiled by Bloomberg show. The MSCI World Index has risen 3.1 percent in 2015 and is valued at a multiple of 16.9.
All 10 industry groups in the developing-market stock index advanced, led by a 1.9 percent gain in energy companies.
Emaar Properties shares advanced after the company dismissed speculation its chairman Mohamed Alabbar is leaving. Dubai’s benchmark gauge surged 2.1 percent, while Abu Dhabi’s ADX General Index gained for the first time in nine days, set to halt its longest losing streak since June 2012.
The MSCI Emerging Markets Index increased 1.4 percent to 969.75 at 7:35 a.m. in London, the most since Feb. 13. The Fed cut its estimate for where the benchmark rate will be by the end of 2015, easing concern that tighter monetary policy would curb demand for riskier assets and sending the dollar soaring.
